China tells mines to raise thermal coal output again - sources

China has told 74 mines to increase thermal coal output by 500,000 tonnes per day to ease supply shortages to the nation's utilities ahead of the winter, according to two industry analysts briefed on a meeting with the state planner on MondayReuters | Updated: September 28, 2016, 18:07 IST

BEIJING: China has told 74 mines to increase thermal coal output by 500,000 tonnes per day to ease supply shortages to the nation's utilities ahead of the winter, according to two industry analysts briefed on a meeting with the state planner on Monday.

It will double the output increases approved by the government in recent days.

Last Friday, the government partially reversed sweeping capacity cuts enforced earlier this year. Those reductions in production capacity had triggered a frenzied price rally and depleted domestic stockpiles this year.

"The amount is raised again as the increase was not enough to catch up with the demand from the power generators," said Zhang Min, a coal analyst with the Sublime China Information Group and one of the sources who had spoken to companies participating in the meeting.